Any Luck Getting Realtors To "show Their Work" When Computing GLA?

[CANative]

Really? What if two brand new houses built by the same builder side by side and one is 2200 sf GLA and one is 4500 sf GLA?

Same quality. Same car storage and other elements of comparison. What about the cost approach and income approaches? What about extraction methods for land value or depreciation? I could go on.

Seriously?

 

[Eli]

Seriously?

I can see it now in your reconciliation:

"GLA has no bearing on value or indications of value. Only what I think counts".

"I don't even know why I included it."

 

[J Grant]

CanNative are you serious?

GLA/sf is one of the key things buyers focus on and are typically willing to pay more for. While smaller differences of SF between homes/condos may not matter much, larger or even moderate differences matter to a large degree.

 

[Howard Klahr]

GLA/sf is one of the key things buyers focus on and are typically willing to pay more for

much, larger or even moderate differences matter to a large degree.

Because properties with large differences in the size of improvements are directly comparable to each other?

Buyers look at location, bed/bath count, kitchens, baths and amount of monthly obligation. Differences beyond that are called bonuses and size is often not one of them.

two brand new houses built by the same builder side by side and one is 2200 sf GLA and one is 4500 sf GLA?

Seriously, tow residences differing only insize by 50%? One of them has a problem based on the composition of the other homes in the area now doesn't it? Ever heard of underdeveloped or superadequacy. Maybe you should refrain form using extremes for your examples.

 

[Eli]

Because properties with large differences in the size of improvements are directly comparable to each other?

Buyers look at location, bed/bath count, kitchens, baths and amount of monthly obligation. Differences beyond that are called bonuses and size is often not one of them.


Seriously, tow residences differing only in 2,300 sq ft? One of them has a problem based on the composition of the other homes in the area now doesn't it? Ever heard of underdeveloped or superadequacy. Maybe you should refrain form using extremes for your examples.

I'm just giving CAN a hard time. He deserves it like I do sometimes.

 

[Howard Klahr]

He deserves it like I do sometimes.

Yes on both accounts

 

[J Grant]

Blah blah Howard, your nit picking of posts aside, do you agree, or disagree that that SF/GLA is (typically) an important element of value and one that buyers consider?

CanNAtive stated it is not. Either you agree with him, or you don,t.

 

[CANative]

On the pre-inspection interview when you asked the approximate size of the house how many times have you received the response "I don't really know" or "1,475 square feet. I saw it on the last appraisal I got." People can't tell the difference between 1400 and 1600 just by looking.

For competing classes of residential property exact GLA is a minor element of comparison. If you're working in an area with very little market activity and must use sales of properties with large GLA variances then adjust away and work harder to get the best data you can. Don't just mindlessly rely on MLS and blame real estate agents for slowing down your process.

 

[CANative]

HUD FMR is based on location and then bedrooms, not GLA.

 

[J Grant]

On the pre-inspection interview when you asked the approximate size of the house how many times have you received the response "I don't really know" or "1,475 square feet. I saw it on the last appraisal I got." People can't tell the difference between 1400 and 1600 just by looking.

For competing classes of residential property exact GLA is a minor element of comparison. If you're working in an area with very little market activity and must use sales of properties with large GLA variances then adjust away and work harder to get the best data you can. Don't just mindlessly rely on MLS and blame real estate agents for slowing down your process.

Yes, agree, the above is obvious. But that's different than your post that GLA does not matter. It matters a great deal. Of course appraisers should try to use properties of similar sf /GLA whenever possible. And this whole thread has been about RE agents/MLS ( and sometimes public records ) not always accurately, representing the dwelling liveable SF/GLA.

Even when we try to select comps of the most similar sf, there are times when at least some of the comps will vary more than a minor amount of SF from subject and then appraiser has to address that.